In November 2021, the Environmental Protection Agency (EPA) added natural gas processing (NGP) facilities to the list of industry sectors required to report chemical releases under Section 313 of the Emergency Planning and Community Right-to-Know Act (EPCRA), also known as the Toxic Release Inventory (TRI). Section 313 requires certain facilities to complete a report annually for specified toxic chemicals. Reports must be submitted to both the U.S. Environmental Protection Agency (USEPA) and the State Emergency Response Commission (SERC) by July 1, and cover releases and other waste management activities of listed toxic chemicals during the preceding calendar year.
Which Facilities Are Now Required to Report?
All NGP facilities that receive and refine raw natural gas from extraction facilities such as off-site wells are now covered by TRI requirements. These facilities remove heavier liquid hydrocarbons and contaminants to purify the natural gas to pipeline-quality standards for distribution to consumers through intra- and interstate pipeline networks. In the process of refinement, these facilities manufacture, process, or use more than 21 chemicals listed under TRI.
If your facility fits the following criteria, you are subject to reporting under the TRI program:
- The facility has 10 or more full-time employees,
- The facility manufactures, processes, or otherwise uses a TRI-Listed chemical in an amount that exceeds the reporting threshold, and
- The facility is in a TRI-covered industry sector. [The facility classification for NGPs is NAICS code 211130 (natural gas liquids) in SIC code 1321 (natural gas liquids)].
According to EPA estimates, approximately 320 additional facilities across the United States and its territories are now subject to the TRI reporting requirements.
What are NGP Facilities?
Facilities classified as natural gas processing plants generally receive gas from off-site operations and process it by separating hydrocarbons and contaminants like hydrogen sulfide, carbon dioxide, and nitrogen to meet industry or pipeline requirements.
Natural gas purification methods include oil and condensate removal, water removal, separation of natural gas liquids, and sulfur and carbon dioxide removal. The EPA has determined that these processes might use, manufacture or process more than 25 TRI-listed chemicals, including hydrogen sulfide, benzene, toluene, ethylbenzene, and xylene.
Some NGP facilities were subject to TRI reporting before this rule because they recover sulfur from natural gas, making them part of a manufacturing sector that already had TRI reporting requirements. These facilities were subject to reporting ONLY their sulfur extraction activities but now must include their other TRI-listed chemicals and processes as well.
Who Is NOT Required to Report?
Facilities primarily engaged in the extraction of natural gas from the earth through drilling, fracking, and other methods, classified under North American Industry Classification System (“NAICS”) code 211130 (“Natural Gas Extraction”), are not subject to TRI requirements unless they are also classified under SIC code 1321. Natural gas compressor stations on transmission or distribution lines and Joule-Thompson and dew point depression valves located at or close to extraction sites are also exempt.
What Are the Reporting Requirements?
The affected NGP facilities must submit annual reports detailing how much of each chemical from the TRI list was released to the environment or managed through recycling, energy recovery, and treatment in the prior year. A “release” is defined as emission to the air or water, or placement in some type of land disposal. The TRI toxic chemical list at present contains 775 individually listed chemicals in 33 chemical categories, including hexane, hydrogen sulfide, toluene, benzene, xylene, and methanol, which are all common in natural gas processing. The list is subject to change, so operators will need to continuously monitor for changes to avoid being out of compliance with this rule.
The final rule became effective on Dec. 27, 2021, and the reporting year began on Jan. 1, 2022. The first annual report for NGPs is due by July 1, 2023. Those facilities required to report should:
- Begin collecting data on the TRI chemicals that are manufactured, processed, or otherwise used at the facility.
- Classify the use of chemicals under the process, manufacture, or otherwise use categories.
- After December 21, 2022, identify your total throughput for 2021 and conduct a data review[1] to see if defined thresholds were exceeded.
- If this is the first report for the facility, register for a Central Data Exchange (CDX) account and use the TRI-Me web application to prepare the forms.
- Certify the documents and submit them by July 1st of each year.
How Can EDGE Help?
If you think your facility may trigger reporting under the TRI program, EDGE can help with the applicability determination and if you know your facility is applicable, we can assist with the process of collecting data, calculating thresholds, and developing the appropriate forms for submission to meet the requirements. Contact our experienced compliance team for more information.
[1] This could include Safety Data Sheets (SDS), Process flow diagrams, Air emissions reports, Production and chemical purchasing records from suppliers, Monitoring records for air, waste, and water discharges, Sampling/analytical data on waste and water discharges, with reports, and Waste profiles, manifests, and reports.